Illustrate the Relationship between Stages of the Business Cycle and the Stock Market
Assume that you have been asked to build a presentation to be given to a group of recent college graduates who majored in non-business related subjects and therefore
know very little about economics or finance. These are intelligent and educated individuals, but they know little about the academics of business.Create a dynamic and
engaging PowerPoint presentation in which you explain the nature of the business cycle and its relationship to the performance of the stock market, as measured by the
DJIA. Begin your presentation by defining the stages of the theoretical business cycle and identifying what happens in each stage to output, employment and inflation.
Then, discuss and illustrate actual business cycles in the U.S. economy since 1900 (see US Business Cycle Expansions and Contractions for U.S. business cycle data).
Next, explain the similar cycle trend in the stock market as noted by bull and bear markets. Then, discuss and illustrate actual bull and bear market cycles displayed
in the DJIA over time (consider the data you examined in your week 1 assignment located at djaverages.com website). Conclude your presentation with observations and
associated inferences that can be drawn from the presented data.
